The National Crime Prevention Council opposes the House's Kids Internet and Digital Safety Act (H.R. 7757), arguing it strips states of child protection powers and lacks 'duty to care' provisions found in the Senate version. The NCPC criticizes the bill as a 'fig leaf' benefiting social media companies, noting over 40 states are suing Meta, Snapchat, Google, and TikTok for harms including fake drug sales and mental health damage.

Meta and Snap show contrasting revenue trajectories, with Meta reporting 33% year-over-year Q1 revenue growth to $56.3 billion versus Snap's modest 12% growth to $1.5 billion. Meta's profitability (48% net margin) and successful AI investments in hardware stand in stark contrast to Snap's unprofitability (-6% net margin), making Meta a more appealing investment despite both companies operating in the social media advertising space.

The article highlights three sub-$10 stocks—Grab Holdings, Snap, and Peloton—as potential turnaround opportunities despite recent declines. Each company trades significantly below analyst fair value estimates and offers substantial upside potential for risk-tolerant investors willing to bet on their recovery strategies and long-term growth prospects.

The article recommends three sub-$10 stocks with market caps over $2 billion: Archer Aviation (eVTOL aircraft company with Olympic Games partnership), Snap (social media platform with 956M users and improving profitability), and StubHub (ticket resale marketplace trading at low valuation despite recent IPO struggles and regulatory risks).

The tech sector continues to surge on AI momentum with major developments including the Pentagon awarding a $500 million contract to Scale AI (backed by Meta), multiple chipmakers reporting strong earnings driven by AI demand, and significant AI partnerships announced. However, some companies face headwinds including workforce reductions and supply chain scrutiny.

Multiple companies announced strategic reviews and M&A activity. J.M. Smucker hired Goldman Sachs for a portfolio review amid activist pressure, potentially leading to a Hostess sale. Meta acquired Assured Robot Intelligence for AI robotics development. Meanwhile, BuzzFeed faces bankruptcy risk after missing a $5 million debt payment with a May 18 deadline. Other notable deals include GameStop's $55 billion non-binding proposal for eBay, Angelini Pharma's $4.1 billion acquisition of Catalyst Pharmaceuticals, and Ametek's $5 billion purchase of Indicor's instrumentation businesses.

US stocks hit record highs as oil prices fall below $100 on hopes of a US-Iran peace deal that could normalize crude supplies and reopen the Strait of Hormuz. The S&P 500 reached 7,384 with RSI in overbought territory, suggesting potential consolidation ahead. Labor market remains resilient with jobless claims at 200,000, though hiring is expected to slow. Mixed corporate earnings: McDonald's beat expectations while Snap and Shake Shack disappointed.

Snap Inc. reported Q1 earnings that beat analyst expectations on both top and bottom lines. The company posted losses of $0.05 per share versus the expected $0.07, and revenue of $1.529 billion slightly exceeded the $1.528 billion estimate. Snap returned to daily active user growth with 483 million DAU (up 5% YoY) and 956 million monthly active users. The company highlighted accelerated revenue growth, expanded margins, and strong free cash flow. However, the stock declined 4.26% in after-hours trading despite the positive results.

Meta's stock fell 8.6% despite beating Q1 earnings expectations, as investors reacted negatively to the company's sharply increased AI and data center capital expenditure guidance, potentially reaching $145 billion in 2026. The market is concerned whether Meta's ad pricing, engagement, and Reels monetization improvements can offset the rising infrastructure costs and protect margins.

Australia is proposing a new revenue-based tax on major digital platforms including Meta, Google, and TikTok, requiring them to pay a 2.25% levy on Australian revenue unless they strike commercial deals with news organizations. The 'News Bargaining Incentive' aims to support struggling media outlets and ensure journalists are compensated for content. The government estimates the measure could raise AUD 200-250 million annually. Tech giants have pushed back, calling it a disguised digital services tax.

Expedia Group has appointed Derek Andersen, former CFO of Snap Inc., as its new Chief Financial Officer effective May 11, 2026. Andersen will succeed Scott Schenkel, who is stepping down after 16 months. The stock was up 0.23% in premarket trading on Friday, with the company set to report earnings on May 7, 2026.

Major tech developments this week include Amazon's acquisition of Globalstar for satellite communications capabilities, Snap's significant workforce reduction of 16%, and strong earnings from Taiwan Semiconductor Manufacturing. Other highlights include Uber's $10 billion robotaxi investment commitment, Aehr Test Systems' $41 million AI customer order, and various strategic partnerships across the tech and defense sectors.